How is your retirement savings doing these days? If you’re like many, it’s probably feeling a little tight.
Many millennials are currently not saving enough for retirement.
If you fall into this category, don’t give up.
Even if you’ve fallen behind in putting money away for retired life, you can still put a few healthy financial habits in place to get back on track for a secure future.
Investing your cash: A vacation is nice, but what if you took that $1,000 and instead invested it? After a year of compounding interest accruing, every dollar you put away may be worth much more than the amount you originally invested. If you continue to cut other expenditures and instead choose to invest that money, you could sit back and watch your money grow without doing a whole lot else.
Take inventory of your career value: If you’re on a path for promotion and know a raise is headed your way, plan to start putting that additional money into savings. Alternatively, if you feel that you’ve plateaued in the workplace, you may have more of a challenging time saving. It may be time to consider another position that will pay you what you feel you are worth so you can begin saving.
Take advantage of employer-matching: If your employer offers a 401(k) with matching and you’re not taking advantage of it, you may be leaving money at the door. You should try to contribute at least enough to max out the amount they will match. Contribute even more if you can.
Scrutinize your budget: Take a good, hard look at your budget to find areas you may be over-spending in without realizing. There are probably more financial drains than you even realize. Plan to cut unnecessary expenses and instead put that money into your retirement savings.
Invest in real estate: Investing in real estate is a financial strategy used by some of the wealthiest people in the world. If you purchase a home at a younger age, you may be eligible for a HECM loan when retirement arrives. This type of loan allows homeowners to borrow from the value of their home without making payments and while keeping the title to their home. Funds can be used for medical expenses, home renovations, travel and daily expenses, making it a great option for many retirees.
If you’re interested in real estate as an investment for your retirement years, I’d love to talk to you about the many benefits of HECM loans to help prepare you for a secure financial future. Contact me today with your questions.
*(1) at the conclusion of a reverse mortgage, the borrower must repay the loan and may have to sell the home or repay the loan from other proceeds; (2) charges will be assessed with the loan, including an origination fee, closing costs, mortgage insurance premiums and servicing fees; (3) the loan balance grows over time and interest is charged on the outstanding balance; (4) the borrower remains responsible for property taxes, hazard insurance and home maintenance, and failure to pay these amounts may result in the loss of the home; and (5) interest on a reverse mortgage is not tax-deductible until the borrower makes partial or full re-payment. This material is not from HUD or FHA and has not been approved by HUD or any government agency.